Three Types of Fertilizer Are Manufactured by a Company-Regular,Supergro,and Jungle

question 26

Essay

Three types of fertilizer are manufactured by a company-Regular,Supergro,and Jungle Feeder.Regular should have at least 10 percent nitrogen and 16 percent phosphorous.Supergro should have at least 12 percent nitrogen and 20 percent phosphorous,and Jungle Feeder should have at least 15 percent nitrogen and 18 percent phosphorous.These are made by using two components-A and B.Component A costs $0.30 per pound and is 14 percent nitrogen and 18 percent phosphorous.Component B costs $0.50 per pound and is 20 percent nitrogen and 24 percent phosphorous.The demand for Regular is projected to be 1000 pounds,while each of the others has a demand of 2000 pounds.Formulate and solve the appropriate linear program to determine how many pounds of Components A and B to include in each type of fertilizer,respectively.

---

Definitions:

Flotation Costs

The costs a company faces when issuing new securities, including fees for underwriting, legal services, and registration.

Net Present Value

The value of all future cash flows from a project or investment adjusted to their present value using a discount rate.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary depending on income level or earnings before taxes.

Subjective Approach

An analysis or decision-making process that is based on personal feelings, tastes, or opinions rather than external facts or evidence.